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Strategies & Market Trends : Expirationless Options (XPOs)- The Next Big Thing -- Ignore unavailable to you. Want to Upgrade?


To: VLD3 who wrote (32)7/9/2005 1:38:24 PM
From: Tech Master  Read Replies (1) | Respond to of 60
 
Interesting. Thanks for the insight on Section 1032. Its not like the IRS isn't going to get their tax money either. If the proceeds go into an interest bearing account, the interest is taxed. If the proceeds are used to buy something, there is the sales tax etc. The probability of single sided XPO positions that never close is virtually nil. Important to note that a similar situation already occurs today on short sales that are never covered and the company go bankrupt. Those short proceeds are never taxed. Correct?



To: VLD3 who wrote (32)7/9/2005 1:47:13 PM
From: Win-Lose-Draw  Read Replies (1) | Respond to of 60
 
IRS doesn't have to do anything. Anybody who has been in the market for any length of time knows exactly what will happen with any perceived tax benefit - the magnitude of the benefit becomes an input to pricing and it gets arbed out of existence in a very short period of time.